Corporate Secretary of Sierad Produce, Ms. Elies Lestari Setiawan, said the company has an option of issuing bonds. But, it opts to seek bank loans since it is easier and faster. Some local and foreign banks have stated their funding commitment.

The loans and facility development may be realized on first semester of 2008.  According to the plan, the company will build the breeding facilities in three locations in Central Java. “It will be used to supply contract farmers in Central Java.  At this moment, the Breeding farm has reached full capacity” said her, in Jakarta, Tuesday (29/1).

The company also wishes to optimalize the feedmill utilization into 85% from current rate of 50%. Sierad has feedmill in Balaraja, West Java and East Java. That way, the transportation cost is expected to decrease in line with development of the new facilities. These new Breeding farms are expected to increase weekly production capacity into 420 thousand days old chick (DOC).

Elies added that the revenue from the breeding farms can only be consolidated towards the financial performance in 2009. It is due because DOC needs 26 weeks to produce eggs.

Furthermore, she added, that the company targets 60% sales growth up to the end of the year. This target is expected to be achieved from the increase of population of the farmers into 1,2 million DOC per week.